October 31ST, 2025
Hot Topics
TRUMPANDXISTRIKEDEAL
U.S. President Donald Trump and Chinese President Xi Jinping reached a series of trade and cooperation agreements during their meeting in South Korea, on the sidelines of the APEC Summit. The leaders agreed to immediately reduce tariffs on fentanyl to 10% and to lower overall U S tariffs on Chinese goods from 57% to 47% China, in turn, committed to discussing semiconductor restrictions with Nvidia and to lifting all obstacles on rare earth exports In Mexico, this could prompt the continuation of discussions on the General Import and Export Tax Law (LIGIE), introduced in September by President Claudia Sheinbaum, which had been delayed, most likely as the government awaited progress in negotiations between China and the U.S.
Source: EL PAIS
MEXICO AND U.S. EXTEND TALKS TORESOLVE TARIFFS
During her morning conference, President Claudia Sheinbaum announced that she held a call with U S President Donald Trump over the weekend, during which both leaders agreed to extend negotiations for a few more weeks to conclude discussions on 54 non-tariff barriers. According to the Mexican President, the talks are already in their final stage and focus on resolving longstanding trade disputes. The extension comes as the 90-day pause on potential tariff increases is set to expire on November 1st
This was confirmed by President Donald Trump, who expressed satisfaction with the new extension while traveling to South Korea for the APEC Summit, emphasizing that the U S continues to benefit from tariff revenues collected during the ongoing negotiations. Since the start of Trump’s second term, that deadline has been repeatedly extended as both countries seek to ease tensions stemming from the broader tariff conflict. This new extension reflects a mutual interest in achieving a lasting solution and maintaining stability ahead of the 2026 USMCA review
Source: CNN NEWS
EBRARD PROMOTES MEXICO’S ECONOMIC PLAN AT APEC SUMMIT
During the Asia-Pacific Economic Cooperation (APEC) Summit held in South Korea, Secretary of Economy, Marcelo Ebrard met with leaders and representatives from 21 member economies. Ebrard presented Mexico’s Economic Plan (Plan México), seeking to strengthen trade and investment ties across the Asia-Pacific region. In particular, he emphasized Mexico’s ongoing digital expansion, universal internet access, and the development of digital markets as key drivers for economic growth in the coming years Ebrard held meetings with counterparts from Japan, Vietnam, Indonesia, and Australia, among others Also, within the framework of APEC, one of Ebrard’s main goals is to promote Mexico’s candidacy to host the 2028 APEC Leaders’ Summit, reinforcing the country’s commitment to regional integration and the objective of growing its role as a strategic partner in global trade
Sources: MILENIO
Hot Topics
SENATEAPPROVES 2026 ECONOMIC PACKAGE
The Mexican Senate approved the 2026 Economic Package, which introduces new taxes on sugary drinks, tobacco, online betting, violent video games, and digital platforms, while expanding the powers of the Tax Administration Service (SAT) to combat tax evasion. The approved reforms cover the Federal Law on Rights, the Special Tax on Production and Services (IEPS), and the Federal Fiscal Code The initiatives now await publication in the Official Gazette (Diario Oficial de la Federación) to take effect in 2026 It is important to note that, while the government has argued that the new taxes pursue public health objectives, the underlying goal appears to be strengthening fiscal revenues amid growing budgetary pressures.
Source: LA JORNADA
INEGI: MEXICO’S ECONOMY SLIGHTLY DECLINES IN Q3
Mexico’s economy shrank 0 3% in the third quarter of 2025, according to preliminary GDP data from the National Institute of Statistics and Geography (INEGI). This marks the first annual contraction since late 2021, driven mainly by a 2.9% decline in industrial activity, including manufacturing, construction, mining, and energy production This comes as a result of weakening business confidence, fiscal tightening, and uncertainty surrounding both domestic and external policies Considering that, ahead of the USMCA review, this uncertainly will prevail, recovery prospects in the coming months could me limited.
Source: EL ECONOMISTA
DE LA FUENTE MEETS WITH EU CONGRESSMEN
Foreign Minister Juan Ramón de la Fuente met with members of the European Parliament’s Mexico–European Union Joint Parliamentary Committee to highlight the Plan Mexico and the country’s growing role as a strategic partner for Europe During the meeting, which focused on deepening bilateral cooperation, De la Fuente emphasized that trade between Mexico and the European Union now exceeds $90 billion, underscoring the scale and strategic relevance of the relationship. He also expressed that the Modernized Global Agreement between Mexico and the EU will be ratified in early 2026. This reflects a push from the government to diversify trade partners beyond North America and strengthen political and economic alliances ahead of the USMCA review in 2026
Source: EL UNIVERSAL
Legislativeand RegulatoryIssues:
PUBLIC ADMINISTRATION
Initiative with Draft Decree to Issue the Mixed Investments for Welfare Law
• Presented by: Dip Gabriela Georgina Jiménez Godoy (CDMX - MORENA)
• Objective: To regulate mixed investment projects for welfare, establishing longterm contracts between public and private sectors to provide services, improve social welfare, ensure transparency and supervision, promote regional development, and set procedures
• Status: 2025-10-28 –Published in the Parliamentary Gazette
SECURITY
Bill with Draft Decree Issuing the General Law to Prevent, Investigate, and Sanction Crimes of Extortion
• Presented by: Justice Committee
• Objective: To create a unified framework for preventing and prosecuting extortion crimes, defining the offense and establishing jurisdiction, coordination, and penalties The bill introduces stricter sanctions for aggravated cases and aims to strengthen victim protection and institutional trust.
• Status: 2025-10-28 –Approved, sent to the Senate of the Republic
FISCAL
Initiative to Amend, Add, and Repeal Various Provisions of the Excise Tax Law on Production and Services (IEPS)
• Presented by: Ministry of Finance and Public Credit (Hacienda y Crédito Público)
• Objective: To protect public health, specially among adolescents and young people, by discouraging habits that lead to addiction or cause mental and physical harm.
• Status: 2025-10-28 –Approved, sent to the Federal Executive
Initiative to Reform, Add, and Repeal Various Provisions of the Federal Fiscal Code
• Presented by: Ministry of Finance and Public Credit
• Objective: To align regulations related to the issuance of fraudulent tax receipts. The initiative grants the Tax Administration Service (SAT) the authority to deny registration in the Federal Taxpayers Registry (RFC) to legal entities if, during the registration process, it is found that the legal representative has participated in companies previously linked to fraudulent activities.
• Status: 2025-10-28 –Approved, sent to the Federal Executive
FISCAL
Bill Amending, Adding, and Repealing Various Provisions of the Federal Rights Law
• Presented by: Joint Committees on First Legislative Studies and Finance and Public Credit
• Objective: To amend the Federal Rights Law to optimize the exploitation of national public assets and update fees for various services. The reform revises charges for financial supervision, water use, maritime and telecommunications services, and intellectual property, ensuring fair cost recovery, efficiency, and alignment with sectoral regulations
• Status: 2025-10-28 –Approved, sent to the Federal Executive
Initiative with Report for Discussion to Issue the Federal Revenue Law for Fiscal Year 2026
• Presented by: Joint Commissions on Legislative Studies, First; Finance and Public Credit
• Objective: To establish the Federal Revenue Law for 2026, setting total estimated revenues at 10 193 trillion pesos, including tax and financing income, authorize domestic and foreign public debt for the federal government, etc
• Status: 2025-10-29 –Approved, sent to the Federal Executive
